Trading Idea: - Is Apollo close to Resistance?

Published on Wednesday, 23 January 2013 08:12 Written by TradersHuddle Wire

New York, January 23rd (TradersHuddle.com) - Shares of Apollo Group, Inc. (NASDAQ:APOL) are trading very close to calculated resistance at $20.43. The stock ended the trading session at just $20.28, which is near levels that make it difficult to buy or start a position.

Apollo Group, Inc. (NASDAQ:APOL) provides higher education programs mainly for working adults. The Company provides educational programs and services at the high school, undergraduate, and graduate levels online and on-campus through subsidiaries.

Apollo's stock range is defined by its calculated support defined at $18.52 and by the resistance level at $20.43; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Apollo. However, as the stock pulls back towards $18.52 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $20.43 then traders will get an opportunity to enter the stock as it moves to a higher range.